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Strategies & Market Trends : Selling Puts: Have Cash Will Travel -- Ignore unavailable to you. Want to Upgrade?

To: taxman who wrote (883)	1/22/2000 8:45:00 PM
From: tyc:>	Read Replies (3) \| Respond to of 1235

How do you cancel a memo? I thought I was replying to a PM. Sorry about this. you and I know better ! naked put writers don't seem to realise that the only reason their strategy has paid off is because we have been in a rising market. They are in for a shock when this market turns. We are seeing some puzzlement about how to react to a "threatened" situation. Their escape plans usually involves rolling out or rolling down. Either route involves closing out their present position (and then opening a new position of the same type). But in a falling market it is unlikely that the new position will be profitable either. If I have to close down one option position, I'll be damned if I'll open another one just like it ! IMHO the only answer is make a profit from the movement of the market; i.e. to hedge ! Good luck, taxman !